The trusted financial news outlet Reuters reported a great possibility for a recession in the U.S. just last June. This was after business cycles in the country dropped for the 15th consecutive month. Business owners need to be proactive to avoid being part of this trend. Investing in the future is one way to get ahead. What’s your next step when it comes to investing in the future of your business? In this blog, we will tackle how outsourcing can be the answer to your question.
What is Outsourcing?
Outsourcing involves an external provider to obtain goods or perform services for you. It isn’t a new concept. However, its advantages during recessions are particularly pronounced. According to a study by Zitkiene et al., published on HAL Science, outsourcing can lead to a significant reduction in costs while maintaining or even improving service quality in certain industries.
How is Outsourcing an Investment?
Outsourcing can help you prepare for rainy days when others might need to break the piggy bank to save their business. Unlike them, you will already have the savings to push through any weather and continue cultivating your business. Here are the ways outsourcing can help you invest in the future of your business:
Cost Efficiency
The biggest advantage of outsourcing during a recession is cost savings. Hiring full-time employees, providing infrastructure, and maintaining in-house operations can be financially taxing. A study from the Blenkinge School of Technology reveals that businesses can save up to 30% of their operational costs by outsourcing specific services or departments. These savings can be channeled into core operations or held as reserves to weather economic storms.
Diverse Expertise
During a recession, you might be hesitant to invest in training or hiring experts. Their salaries can skyrocket just when your costs are increasing. Outsourcing provides companies with instant access to global professionals who can work with your fees. At MOVE we can connect you with virtual employees who have the skills and expertise you need at the cost you can afford.
This access ensures that businesses don’t compromise on quality despite financial constraints. Unity Communication‘s research supports this, noting that businesses can tap into a range of skills, often at a fraction of the local cost.
Adaptability
You can’t predict when there will be a recession. According to a paper in Emerald Publishing, outsourcing can help you face the changes that are ubiquitous in the business landscape. Outsourcing allows you the flexibility to scale operations up based on demand. You also won’t be tied to long-term contracts, providing you with the adaptability to navigate through weather any storm.
Mitigating Risks
Running a business involves taking risks— that’s what can help it expand. However, you don’t always have the room to take a hit. Ensure the protection of your business, especially when downturns are likely. Partner with an outsourcing provider so you can save on your costs while you’re still growing your business.
Staying Competitive
Aside from cost savings and professional talent, outsourcing enables companies to keep up with technological changes and remain competitive. It can be intimidating to invest in cutting-edge technology during a recession. However, outsourcing companies often have the newest equipment and technology, particularly in the IT and digital sectors. Businesses may make sure they stay on the cutting edge without making significant investments by using their services.
The Bottom Line
Investing in the future can look like outsourcing to a partner to ensure you have savings for the rainy days. While outsourcing presents numerous benefits, especially during recessions, businesses should approach it with due diligence. It’s vital to choose the right partner, set clear expectations, and maintain open communication channels.
Approach outsourcing with a reliable team on your side with Managed Outsourced Virtual Employees or MOVE. Contact us for more information.